Major U.S. Retailers Are Integrating Crypto Payments: Here's What It Actually Means

The line between traditional finance and digital assets keeps blurring. Walmart and Starbucks are among the growing list of major retailers now offering cryptocurrency as a payment method, signaling a significant shift in how mainstream commerce operates. Yet there’s an important catch: these chains aren’t accepting crypto directly. Instead, customers convert their holdings to cash first through dedicated apps before completing their purchase.

How the Payment Process Actually Works

At Walmart, the mechanics are straightforward. Shoppers holding bitcoin or ethereum can sell their holdings within the Walmart OnePay mobile app, then use the converted funds to pay at checkout by scanning a bar code or transacting online. Starbucks launched a similar setup back in 2021, leveraging the SPEDN mobile app for the same conversion-then-purchase workflow. While the process adds an extra step compared to traditional card payments, it opens a previously untapped avenue for digital asset holders to spend their holdings at scale.

“Walmart is starting to integrate it into the OnePay app,” noted Brian Spinelli, Co-CIO at Halbert Hargrove. Despite this integration, no major retailer has yet moved to accept cryptocurrency as direct payment without the conversion layer.

The Real Meaning Behind Crypto Adoption at Scale

What does this shift actually mean for everyday consumers? The implications extend beyond simple convenience. A significant population remains underbanked—people who don’t maintain traditional bank accounts but hold cryptocurrency on their phones. For this demographic, the ability to convert digital assets into spendable funds through mainstream retailers represents a tangible bridge into the consumer economy.

“There are numerous people, even in the US, who are unbanked,” Spinelli explained. “This is going to make it easier for them to convert holdings into a payment form. If you don’t have a bank account, but you own crypto on your phone, this bridges that gap to allow mainstream retailers to open to a consumer base that might not have access to free banking.”

The availability to tap into crypto holdings whenever needed—whether for essentials like baby formula or a simple coffee—could fundamentally reshape how people think about digital asset liquidity and accessibility.

The Tax Headache You Need to Know About

Before rushing to sell crypto for everyday purchases, understand the tax complications. The IRS classifies digital assets as property rather than currency. This means every transaction involving crypto conversion triggers a taxable event, requiring you to report capital gains or losses.

“You’re going to have a lot of gain-loss scenarios where you might have a lot of transactions to report,” Spinelli warned. For someone making frequent small purchases this way, the administrative burden and tax filing requirements could become unwieldy without professional guidance.

Additionally, if you sell bitcoin to buy merchandise and later return it, you’ll receive cash equal to the current value—potentially locking in a loss from your original purchase price. However, in scenarios where the alternative is carrying a high-interest credit card balance, converting crypto may still prove financially sensible.

“Avoiding the high interest credit card is probably the better option,” suggested CK Zheng, cofounder and CIO of ZX Squared Capital.

Investment Implications: Why Adoption Matters Long-Term

From an investor’s perspective, the broader meaning of crypto payment integration in retail environments cannot be overstated. Widespread adoption should theoretically drive bitcoin’s value upward over time, benefiting those holding the asset.

Bitcoin currently exhibits hybrid characteristics—behaving partly like a high-tech equity and partly like a store of value similar to gold. Its current volatility stems largely from perceived riskiness and market supply-demand dynamics. However, as integration deepens and usage becomes mainstream, volatility should naturally decline.

“When bitcoin matures and is widely used as a currency, its volatility definitely will decrease,” Zheng noted. “The more adoption, the more people using it, the more people holding it, might stabilize it,” Spinelli agreed. “It’s been a pretty volatile asset and still is. But the more adoption that there is, that’s a good thing for bitcoin.”

The Bottom Line

Major retailers embracing cryptocurrency payments represents a meaningful milestone in digital asset maturation. While the current model still requires conversion to fiat currency, the infrastructure being built today—and its accessibility for unbanked populations—signals a fundamental reshaping of payment systems. For investors, increased adoption bodes well for long-term value appreciation. For everyday users, the decision to spend crypto on groceries or holiday gifts should weigh tax implications, opportunity costs, and personal financial circumstances carefully before taking action.